Fear and Filled Reserves


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WTI analysis – 28 April 2020

By: Ahura Chalki

Later today and tomorrow, we will have the API and EIA weekly reports, which investors will be cautiously looking at them to see the policy of the US Oil industry about storages and future plans in their weekly reports.

For now, what is leading the market is the fear of the same fate for July contracts, as it happened last month for May contracts, while major oil importers report that their storages are full.

On the other hand, the step-by-step reopening of economies from the second part of May in the US and from next week in the EU, as some Auto factories like Volkswagen and Ferrari already started, will help the positive sentiments of the market to grow and it can help the WTI prices as well, however, it takes a bit more time to have more confidence in the market, which can start from July agreements, more probably.

WTI technical overview – H1 chart

Technical indicators have mixed signals today. Price is trying to return above the OBV trend line, while RSI also is taking some distance from the oversold area. EMA crossing strategy still supporting the bulls, and Heiken Ashi bearish Candles ended with a green correction signal.

Pivot point: 13.54

Resistance levels: 15.25 / 18.40

Support levels: 10.40 / 8.70

Today, the expected trading range is between 10.40 support and 15.25 resistance.

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